An employee who joined a corporate employer that was not a competitor with his former employer was still enjoined and restrained by restrictive covenants he signed with his former employer when his new employer merged with his prior employer’s competitor.
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Ohio Supreme Court Reverses Itself, Holding That Noncompete Agreements Do Transfer To The Successor Corporation After A Corporate Merger
Posted in Non-Compete Agreements
Last week, the Ohio Supreme Court reversed its decision of earlier this year in Acordia of Ohio, L.L.C. v. Fishel et al., in which the Court held that when a company that was the original party to a noncompete agreement merges in to another company, unless the noncompete agreement contained a “successors and assigns” clause, the merger was a termination of employment which triggered the running of the restrictive period in the noncompete.
Continue Reading Ohio Supreme Court Reverses Itself, Holding That Noncompete Agreements Do Transfer To The Successor Corporation After A Corporate Merger